Lido stETH Arbitrage

Lido lets users stake ETH for daily staking rewards via it's stETH token. stETH is 100% backed by ETH that is locked in ETH validator nodes. Typically stETH and ETH are pegged 1-1, but when more people are trying exit their stETH positions the price can drop as much at 5%, which is typically restored within a couple days.

We are proposing to pre-approve up to 50ETH ready to purchase stETH should it de-pegs, and swap it back to ETH once the peg is restored.

The two main risks of this operation are: i) Vulnerability within the Lido smart contract ii) The peg is only restored when the ETH collateral is unlocked, the exact timing is unknown but expected to be at least 6 months away.

For information: i) Lido is the second largest deFi protocol after MakerDAO with a TLV (total locked value) of $5.7b ii)You can view stETH/ETH pair on Coinmarketcap https://coinmarketcap.com/currencies/steth/steth/eth/ iii) Genesis DAO already holds 10 stETH